August 16th, 2001 has marked your first year in power. What have been your major achievements, and what areas would you now like to focus on?
When running for the Presidency, our campaign was based on four basic priorities: education, health care, food, and housing. As far as education is concerned, I have allocated 18 to 20% of the national budget, and I am referring to primary, secondary, postgraduate, professional and technical education. Regarding health care, we have prepared new laws for Health and Social Security. We have waited 37 years for the first regulation on Social Security. This regulation was just approved two months ago, and is now being enforced. The third priority is agriculture, that I consider essential being myself an agronomist. I want to clarify that when I talk about food program, I also refer to natural resources and environment. And finally, according to our statistics we need one million one hundred thousand houses for people in need, that live in subhuman conditions. Therefore, the State should give special attention to them.
These social policies are absolutely necessary, but how do you manage to balance the budget with such social expenses? Wouldn't it cause an excessive deficit?
On the contrary. When I implement an aggressive food program, I am solving a big importation problem in the country. For the milk industry, we import US$ 120 million, and almost US$ 400 million in food. The same happens with the housing policy. I have to mix social plans and social advantages with a consolidated economy.
Is it not contradictory to talk about a government with an open economic policy, and at the same time focusing on social issues?
Absolutely not. The government has the obligation to shape its policy and to orient it to the most needed sectors. It is not so important to have a developed economy if my fellow-citizens are unsatisfied. That is the reason why I have given it the name of "economy with a human face". I must communicate with my fellow-citizens to know their needs. My priority is not so much growth, but the social dimension of the economy. And we cannot speak of a great development if the fellow-citizens are not the main part of it.
Telecommunications, tourism and free zones are considered to be the three pillars of the Dominican economy, both for their business volume and dynamism. What measures are being prepared by the government to strengthen these sectors?
In telecommunications, the government has transformed an institution called Indotel into a regulating body. There are several telecommunication companies in the Dominican market: Codetel or Verizon, Tricom (a national company), France Telecom and Centennial. In the Free Zones sector, the role of the government should be a helpful one, building bridges. We have done it for the big investors and consumers of raw materials, such as textiles and shoes. Therefore, I think the government should be a "facilitator", not a regulator. But the big "boom" this year has been the development of agriculture.
Another strong sector in the economy is tourism. In this aspect, Dominican Republic has not grown so much, but neither has Latin America. However, we have not gone down, at least. We are going to end the year with a development of about 2% to 3%, and for me that is acceptable, as there is a recession in Asia, Europe, and the United States. We could add another ingredient: the management of our environment. We have a strong tourism of "sun and sea", but there is no reason why we cannot focus on eco-tourism. For cultural tourism, we are the window and the door of America. We have the Colonial Zone, with the historical heritage of Spain, the house of Christopher Columbus and Bartholomew Columbus, the big discoverers of America. In the whole national territory we have the influence of the towns from those ages. An interesting point: last year, the Dominican Republic spent US$ 8 million in promoting and marketing the country. I have just approved a US$ 38 million budget for the international market because we are looking at attracting more tourism with a higher income level.
What steps should be implemented to attract this selective tourism without putting at risk a large affluence of tourists?
We already have very good hotels, but we need to increase the number of top luxury resorts. International stars also help by their presence; Julio Iglesias lives here, and so does Oscar de la Renta. We had the visit of the ex USSR President, Mikhail Gorbachev. The ex-President from the United States, Mr. Clinton, and the first Lady Hillary Clinton, were here and stayed on our beaches for a week. Many basketball and baseball stars come here. You will see the construction of a thousand villas with their own beaches. We are working on a new seacoast regulation in order to develop the tourism of ship cruises. The most important element is that 25 years ago, the Dominican Republic had 600 to 700 rooms, when today it has 50,000. This illustrates the outstanding development of the Dominican Republic. But it is not only the tourism of sea and sun that makes our country unique, it is also the charm of our people, the care they have towards our visitors, the music and the quality of life.
Tourism is the country's main source of foreign exchange earning, the second one being the remittances from Dominicans living abroad. Could you give us some exact figures?
Thanks to tourism we cash US$ 3 billion. Another significant source of foreign exchange earning comes from Dominicans living in the United States. They are about one million two hundred thousand living abroad. They send money to help their families, and that adds up to approximately US$ 2 billion. | What measures have you taken to attract Foreign Direct Investments (FDI) to the country?
This year we have received US$ 780 million in foreign investment. Our investment promotion center, OPI, is like a window through which we receive inquiries from foreign businessmen. The most important element is the confidence that we have in the Dominican Republic, confidence in an open economy, in the rules of the game and confidence in our development. Spain for instance is one of the country's major investors, especially in the tourism industry. Up to now, everything I ask from Spain comes even before I have requested it. Their support is fantastic. There is a special relation with the Dominican Republic.
What are the main investment opportunities?
The main opportunities lie in the tourism sector, public works, housing and construction. At the same time we also have a need to supplying equipment for hospitals and other State departments.
What are the main guidelines of your foreign policy, and how would you rate your ties with CARICOM countries and Central America?
Six months ago, we decided to open relations with CARICOM, and we enacted the law of free trade with Latin America. The country is also a member of the Contadora Group, currently called the Group of Rio for Economic Development. The 12th of August, I will be joining the summit in Chile. This means that we are present in Latin America's scenario. We have a special relation with Central America, which is currently being strengthened. That is the reason why foreign relations are a new and exciting activity for us. For one hundred years, the Dominican Republic had been isolated from the world, but now that is changing. This change started with the previous government, and we are pursuing it. I am a personal friend of all the Presidents in Central and South America, as well as in the Caribbean.
How would you rate your relations with the United States?
The trade openness is a reality. What we have asked for is respect, and we are going to fight for it. We want a respectful behavior towards a poor and small country such as ours. We don't want to be treated like a big and powerful country, because that is not possible. Some rules must be established. This is very clear in a globalized economy. Obviously, the United States is the Dominican Republic's largest trading partner; more than one million Dominicans live in the United States, and much of the raw material for our companies comes from that country. Therefore, relations with United States are excellent, very respectful and harmonious.
How can you protect an emerging economy such as the Dominican Republic from the globalization trend, and the power of its multinationals?
We have to play with trade taxes, protect ourselves with a solid tributary law that doesn't put us at a disadvantage. There is no other way, and of course we have to open up to international markets. I have recently approved a law on State Bonds, and we were the only country of Latin America without Bonds from the government. We are implementing this aggressive policy with openness. Of course, baby pigeons must learn to fly little by little. But there is a very clear idea of globalization, how we fit in it and what are the differences between big and smaller countries.
What image of the Dominican Republic would you like to portray overseas?
This is one of the few countries in America and around the world that has grown more than 7% in the last decade. I am not so optimistic to believe that we still have that advantage, but we will continue to grow. We have a very healthy economy. We are a country with a well-defined macroeconomic policy, with freedom of religion, freedom of speech and democracy, a country where your investment is secure. Climate conditions are extraordinary for tourism. We have to develop transportation infrastructure. We have to reach other Caribbean islands. We're working hard to have more roads and ships. I have a lot of faith in the growth and dynamism of the Dominican Republic. I'm very optimistic and the reality is that we have taken off. We are now investing in our people and our youth, that is vital. My Vice President is the Minister of Education, with a clear focus, hard working and all the required political support. We are implementing the uppermost technological projects in our schools, and throughout the territory. It is our priority to invest in our future, our education.
What has been so far your most rewarding experience as President of the Dominican Republic?
I believe I haven't changed. As President, I am as I was before, a countryman, a man for the people. I remain a family man, with wife, children and grandchildren. I don't live because of politics, and I'm not interested in it. There are many crooks among politicians. My main goal is to put an end to privileges, corruption, and stealing in our country. I am the same countryman that enjoys getting involved with the poor people and the fellow-citizens. I have not changed at all.
Note: World Investment News Ltd cannot be held responsible for the content of unedited transcriptions. |
V.I.P. INTERVIEWS 
